Summer travel remains strong despite price pressure

Rising costs, changing demographics, and a desire to stretch your money are likely changing the way Americans travel

new york, May 21, 2024 /PRNewswire/ —

Important points

• Amid rising prices, Americans still value travel planning. Although 48% of those surveyed plan to travel and stay in paid accommodation at the same level as last year, there are fewer holidays overall this summer.
• Your budget is increasing due to rising prices One in five people surveyed said they will spend significantly more on travel in 2024 compared to last year.
• Air travel is rapidly increasing domestically and internationally Of all summer travelers surveyed, 52% plan to fly domestically and 22% plan to fly internationally.
• The demographics of summer travelers are changing; Higher income and older travelers are most affected About travel budget.
• workplace flexibility and Remote work continues to drive travel plans; 21% of those surveyed plan to work during or longer than their longest travel period this summer.

why is this important

Awareness of rising costs and other economic pressures may be causing some Americans to reconsider how they travel. Although some people find traveling expensive, those who do travel are determined to make the most of their travel experience. In a new report, Vacations Pass the Value Test: 2024 Deloitte Summer Travel Survey, Deloitte examines the trends and preferences that could shape the upcoming summer travel season.

Despite pricing pressure, vacations pass the value test

While financial pressures may make some people reconsider the frequency and duration of their trips, most people are determined to travel this summer. Additionally, many Americans are reevaluating what travel means to them, placing more emphasis on rest and connection, and seeking opportunities to get the most out of their travel experiences.

• According to the survey, 6 in 10 Americans are planning to travel this summer, and 48% plan to stay in a paid accommodation (down from 50% in 2023).
• Americans are planning trips like it's 2022. This summer he is scheduled to take 2.3 trips, down from 3.1 in 2023 but on par with 2022.
• As for people who travel, almost one in five (19%) say they will spend significantly more on travel in 2024. This is mainly due to rising prices and more ambitious travellers.
• There are more high-income travelers and average travel budgets are rising. The increase in high-income travelers has led to an 18% increase in travelers' longest trip budgets.Households with income above $100,000 Accounted for 35% of summer 2023 travelers. In 2024, it will account for 44%.
• Many companies base their budgets on their overall financial situation. Travelers who feel their financial situation has improved over the past year spend: $528 Compared to the average traveler who took the longest trip, travelers felt their travel situation had worsened. $855 few.
• Two-thirds of baby boomers plan to travel this summer, but plan to spend more conservatively on their longest trips, primarily to allow for more trips throughout the year.
• The price is causing some people to reconsider traveling altogether. A third of non-travelers (32%) plan to stay at home due to current travel costs, an increase of 8 points from 2023.
• Vacations (53%) and love (35%) have skyrocketed as motivations for travel, with trips planned for specific events also up 5 points year over year. Travel motives usually don't change much, but they've been relatively inconsistent in recent years. This suggests Americans may be rethinking the role of travel in their lives.
• Similar to last year, many travelers plan travel experiences within their destinations, including adventure and outdoor activities (49%), visiting major attractions (48%), and taking guided tours (34%). I am. Interest in ticketed events such as festivals and concerts also continues to grow, with nearly three in ten respondents (28%) saying they would attend.

Travel products that balance experience and cost

Travelers are willing to pay for enhanced vacation experiences this summer, but they're also considering alternative accommodations, transportation, and new travel locations to stretch their budgets. While demand for non-hotel accommodation is likely to surge, destination mix is ​​changing, international travel intentions remain consistent.

• Hotels still make up the majority of summer travel bookings, but they are declining. 63% of paid overnight travelers only stay in hotels for major trips, down 10 points from 2023. At the same time, more travelers are considering alternative accommodations. 23% plan to stay in a vacation rental; Those who stay in other places such as bed and breakfasts (B&Bs) or recreational vehicles (RVs) will increase by 8% from 2023 to 14%.
• Six in 10 paying overnight travelers (62%) fly domestically for their primary trip, while 38% fly internationally.
• Hurry up Europe Last year, international travelers diversified their destinations for the season's longest trips.purpose of travel Asia The biggest jump was seen, rising 3 percentage points from 2023.
• 43% of air travelers are willing to pay for a more comfortable flight experience (such as a seat upgrade), up from 39% in 2023.
• More Americans plan to take a major trip this year (66% vs. 56% in 2023), with nearly half driving to save money and 42% traveling to a nearby destination. I answered that it was for.

main quote

“Despite the economic turmoil many Americans are feeling, travelers still value experiences and their desire to travel is similar to last summer. There is a perception that airfares and lodging are expensive. , some Americans are cutting back on traveling this summer.''As travelers look to pack the most value into their summer vacations, travelers are showing signs of being hungry for deals. They are passionate about pursuing special experiences that are worth paying more for. Costs and expenses to provide unforgettable moments for those looking to make the most of their travels this summer. ”

— mike daherDeloitte LLP Vice Chairman and U.S. Non-Certified Leader in Transportation, Hospitality and Services

Travelers navigate new tools for planning

Americans are leveraging new tools to find deals as they plan their summer trips.

• While more people say they plan to book accommodation directly, the intention to book through online travel agents (OTAs) is increasing (20% vs. 16% in 2023). This is primarily driven by young, high-income travelers.
• As of March, only a third (35%) of this summer's trips were fully booked.
• Young travelers (44% of Gen Z and one-third of Millennials) rely on short-form videos to find activities to fill out their vacation itinerary. Millennials are the most likely to use short-form videos to find restaurants (61%).
• The use of GenAI in travel planning has slowed and the impact has been minimal. 1 in 10 people plan to use GenAI for travel planning (8% during the 2023 holiday season).

People who carry laptops bring more work with them.

The flexibility of remote work is perhaps the pandemic's most lasting impact on the travel industry, and its effects continue to be felt as more “laptop luggers” plan to work more frequently during their summer travels.

• One in five travelers (21%) are planning to undertake their longest trip this summer, up slightly from last year, but more than 1 in 5 (21%) are planning to undertake their longest trip this summer, although more say they will undertake the entire trip rather than just part of it. increasing.
• People carrying laptops continue to extend their travel plans with the flexibility of working remotely. They anticipate extending seasonal trips by nine days and extending longest trips by four days.
• People who plan to work while traveling are more likely to have a higher budget than disconnectors ($4,157 compared to $3,259).
• People who carry their laptops should consider several important factors when planning their trip, including reliable internet availability, availability of good food near their accommodation, and booking refundable activities. To do.

main quote

“Workplace flexibility continues to drive travel decisions and opportunities for travel providers for people who carry their laptops.While financial concerns are holding some Americans back, booking Delays are an opportunity for travel operators to double down on offers to maximize value and attract additional travelers to destinations near and far. ”

— Eileen CrowleyVice Chairman, Deloitte LLP, U.S. Transportation, Hospitality and Service Certification Leader

Deloitte's Summer 2024 Travel Survey is based on a survey of 4,022 Americans in the field. From March 20th to April 2nd, 2024Of these, a smaller number of travelers completed the longest version of the survey: 2,348 qualified travelers and 1,936 travelers who said they would be staying in paid accommodation and not just with family or friends.

Connect with us on Twitter. @DeloitteUS or LinkedIn @MikeDaher and @EileenCrowley.

About Deloitte

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Source Deloitte